Vanguard Group announced that John A. Levin was dropped as one of the subadvisers of the $4.3 billion Vanguard Equity Income Fund. The $800 million managed by the firm will be distributed between the fund's remaining two managers, Wellington Management and Vanguard's own Quantitative Equity Group. Wellington will now manage 60% of the fund, or $2.6 billion, with the Vanguard group managing 40%, or $1.7 billion.
The change comes roughly one month after wrangling between John A. Levin — CEO of his eponymous firm's parent company, BKF Capital Group — and several big hedge fund shareholders of BKF stock ended with an agreement that Mr. Levin would step aside as CEO but become chairman emeritus. Asked if that top-level change led to the termination, Vanguard spokeswoman Amy Chain said the "depth and composition" of a firm's management team is one of many factors Vanguard takes into account.
"The board concluded that adopting a co-manager structure lending Wellington's fundamental approach with Vanguard's quantitative strategies would best serve the fund going forward," Vanguard Chairman and CEO Jack Brennan said in a press release
A spokeswoman at John A. Levin said it is company policy not to speak with the press.